Tax
CESTAT Allows Refund Of CENVAT Credits On Service Tax Paid During GST Regime Under Reverse Charge Mechanism On Import Of Services
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Dr. Suvendu Kumar Pati (Judicial Member) allowed the refund of CENVAT credits against payment of Service Tax paid during the GST regime under the Reverse Charge Mechanism on the import of services.The appellant/assessee was required to pay service tax under the Reverse Charge Mechanism in...
Compensation Paid By Employee To Employer For Resigning From Service Without Giving Requisite Notice Is Not A Taxable Service: CESTAT
The Bangalore Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of S.K. Mohanty (Judicial Member) and P.Anjani Kumar (Technical Member) has held that any compensation paid by the employee to the employer for resigning from the service without giving the requisite notice, would not be termed as consideration for the contract of employment and would not fall...
Liquidated Damages Does Not Attract Service Tax: CESTAT Hyderabad
The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that receipt of liquidated damages by the service provider for breach of conditions under an agreement to provide services would not attract Service Tax. The Bench, consisting of members P.K. Choudhary (Judicial Member) and P.V. Subba Rao (Technical Member), held that claim...
No Conflict Between Power To Levy GST And Power Of Municipal Corporation To Levy Advertisement Fee Or Advertisement Tax: Karnataka High Court
The Karnataka High Court bench of Justice Suraj Govindraj held that there is no conflict between the power to levy GST under the GST Act and the power of a municipal corporation to levy an advertisement fee or advertisement tax under Section 134 of the Karnataka Municipal Corporations Act.The petitioner, Hubballi Dharwad Advertisers Association, is a registered association of...
Bail Amount Can Be Paid By Cash Ledger, Debit Ledger Of ITC: Delhi High Court Refuses To Cancel Bail Of A Person Accused of Fraudulently Availing ITC
The Delhi High Court bench of Justice Mukta Gupta has ruled that the bail amount can be paid by cash ledger and debit ledger of the Input Tax Credit (ITC). It has been alleged by the department that the petitioner is one of the directors/key persons in M/s Brilliant Metals Pvt. Ltd., M/s Progressive Alloys India Pvt. Ltd. and M/s JBN Impex Pvt. Ltd. and allegedly the mastermind...
Foreign Origin Gold Bar With Unexplained Source Is Liable For Absolute Confiscation As It amounts To Importation Of Prohibited Goods: CESTAT
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.Dinesha (Judicial Member), while remanding the matter back, held that the gold bar with a foreign marking, the source of which is not explained, is liable for absolute confiscation since the same would amount to the importation of a prohibited good. A specific intelligence was gathered...
Weekly Round Up Of Tax Cases : 1 May To 7 May, 2022
Supreme CourtSupreme Court Saves Over 90,000 Income Tax Reassessment NoticesIssued After 2021 Amendment By Deeming Them As Notices Under Section 148A Case Title: Union of India v. Ashish Agarwal Citation : 2022 LiveLaw (SC) 444 The Supreme Court, on Wednesday, directed that reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond...
GST Refund To Be Granted To The Entity Who Borne The Tax Burden: Gujarat High Court Allows GST Refund To Service Recipient
The Gujarat High Court bench of Justice J.B.Pardiwala and Justice Nisha M.Thakore has held that, as per Section 54 of the CGST Act, a claim of refund may be made directly by the recipient if he has borne the burden of tax.The writ applicant is a practising advocate in the High Court. The writ applicant entered into an agreement with the respondent, Navratna Organisers & Developers...
Composite Supply Of Hospital Construction Works For Govt Entity Attracts 18% GST: Maharashtra AAR
The Maharashtra Authority of Advance Ruling (AAR), consisting of members Rajiv Magoo and T.R. Ramnani, has ruled that 18% GST is payable on the composite supply of hospital construction works for government entities. The Uttar Pradesh Rajkiya Nirman Nigam Ltd. (UPRNN), a Government of Uttar Pradesh Undertaking, has floated online global open e-tenders for the construction of a...
Form GST DRC-16 Merely Attaches Immovable Properties & Not Bank Account: Madras High Court Refuses To Quash Attachment Notice
The Madras High Court bench of Justice C. Saravanan has held that form GST DRC-16 merely attaches immovable properties. There was no attachment to any bank accounts. The assessee appeared to be interested in dragging on the proceeding, though it appeared to be in arrears of huge amounts of tax. The petitioner/assessee had earlier filed writ petitions challenging the order passed by...
Prosecution By Revenue Department Malicious And Patently Malafide, Madras High Court Quashes Complaint
The Madras High Court has quashed the complaints filed by the income tax department against the assessee for wilfully attempting to evade payment of tax under Section 276 C (2) of Income Tax Act, 1961 on the ground of malicious prosecution, non-application of mind and abuse of power. The Single Bench of Dr. Justice G. Jayachandran ruled that to invoke the deeming provision of Section...
Bombay High Court Directs Assessee To Pay Rs.25,000 to Assessing Officer As The Stay Order Was Not Proactively Communicated
The Bombay High Court bench of Justice K.R.Shriram and Justice N.R.Borkar held that the petitioner should have been proactive and promptly communicated the stay granted by the Court to the Assessing Officer so that he would have had enough time to make enquiries with his advocate and also check on the website about orders passed. The Assessing Officer, G.S. Naveen Kumar, filed...